Political party Momentum is calling on the government to introduce major tax reforms in Budget 2027, including a flat 20% corporate tax rate and an increase in Malta’s minimum wage to €360 per week.The party argues that Malta’s current tax system places an unfair burden on workers and local businesses, while foreign corporations benefit from significantly lower effective tax rates.Among its proposals, Momentum wants the minimum wage to gradually increase to €360 per week over four years.It is also calling for annual cost-of-living adjustments (COLA) to be fully exempt from income tax, ensuring workers receive the full amount.But the proposals don’t stop there.In a bid to tackle Malta’s brain drain, Momentum is proposing a flat 15% income tax rate for fresh graduates during their first five years after graduation.Those graduating with Level 7 or Level 8 qualifications, as well as professionals returning to Malta after spending at least five years abroad, would benefit from the same 15% rate for their first ten years back.When it comes to businesses, Momentum wants to gradually increase the effective corporate tax rate paid by foreign companies from 5% to 20%, while reducing the domestic corporate tax rate to 20%.Both changes would be introduced over five years, with the aim of establishing a single corporate tax rate for local and foreign businesses.Companies with a proven record of tax compliance would also qualify for a reduced rate under the party’s proposals.Momentum is also pushing for incentives aimed at encouraging research and innovation.Businesses investing more than 10% of their annual turnover in research would pay no tax on qualifying intellectual property income for five years, with the rate subsequently capped at 10%.The party is also proposing the removal of capital gains tax on employee share option schemes, alongside tax incentives for renewable energy projects, battery storage and young farmers.“Malta’s tax system has asked the most from those with the least room to manoeuvre,” Momentum Treasurer Carmel Asciak said.“Local businesses pay more than foreign giant companies, and our graduates leave because they can earn more elsewhere. We want a system where talent chooses to stay and everyone plays by the same rules.”The proposals form part of Momentum’s recommendations for Budget 2027, with the party urging the government to create what it describes as a fairer tax system for workers, graduates and businesses.What do you make of Momentum’s proposed tax reforms?•